Presentation given to 2013 Nestlé Investor Seminar Sep 30 - Oct 1

1. September 30th, 2013 Nestlé Investor Seminar 20131
Wyeth Nutrition and Nestlé Nutrition
Greater China Region
John Cheung
Regional President GCR
Wyeth Nutrition
James Chiu
Regional Business Head GCR
Nestlé Infant Nutrition

2. September 30th, 2013 Nestlé Investor Seminar 20132
Disclaimer
This presentation contains forward looking
statements which reflect Management’s current
views and estimates. The forward looking
statements involve certain risks and uncertainties
that could cause actual results to differ materially
from those contained in the forward looking
statements. Potential risks and uncertainties
include such factors as general economic
conditions, foreign exchange fluctuations,
competitive product and pricing pressures and
regulatory developments.

3. September 30th, 2013 Nestlé Investor Seminar 2013
AGENDA
I The China IF / GUM Market
II Wyeth Nutrition & Nestlé Nutrition: 1+1=3
III Winning strategies of Wyeth Nutrition & Nestlé Nutrition
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4. September 30th, 2013 Nestlé Investor Seminar 2013
0.3
0.4
5.1
0.3
1.8
7.8
Strong market growth in the Greater China Region
4
GCR IF / GUM Market Size
Bio CHF, %, 2008-2013E
2008 2013E
5.7
9.9
Mainland China Hongkong Taiwan
Key Growth Drivers
• Mainland China:
- 15~17 mio newborns; one-child
policy
- Urbanisation
- Premiumisation
• Hong Kong / Taiwan:
- HK benefits from mainland
shoppers and mainland babies
born in HK
- TW is stagnant due to declining
births
Source: Nielsen, China Statistic Bureau
4

5. September 30th, 2013 Nestlé Investor Seminar 2013
Rapid urbanisation and household incomes increase
2012
52%
2011
51%
2010
50%
2009
47%
2008
46%
2018E
57%
China Urbanisation Trend
%, 2008-2018E
More working mothers with growing income
Source: China Statistic Bureau, Economist, McKinsey
Disposable income per capita
USD
5,477
2,691
2,321
1,887
1,6421,455
2018E20122011201020092008
5

6. September 30th, 2013 Nestlé Investor Seminar 2013
China city tier at a glance
City
tier
# of city
Population
(million)
% of
national city
population
GDP/Capita
(CHF)
IF market
value size
(weight%)
Key 4 10 – 19 4% 12,034 15%
A 27 1.5~9 12% 7,989 21%
B 282 0.2~4 32% 4,538 31%
C/D 1,633 0.2~1.5 27%
1,387 33%
Town 32,608 0.02~0.07 25%
Source: Nielsen and China Statistics Bureau of 2011 data
Lots of room for growth
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7. September 30th, 2013 Nestlé Investor Seminar 2013
IF segment value importance
%, 2008-13E
CAGR
%, 2008-13E
Premium and super premium segments growing rapidly
Note: Segment definition (RMB price/per kg), Stage 1 as example: Super premium: > RMB 290; Premium: (190,290); Upper-mid: (125,190); Mid: <125
2013E20102008
-32% Mid
-10% Upper-Mid
18% Premium
99% Super premium
Premium and super premium the two largest segments
Source: Nielsen, team analysis
3%
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8. September 30th, 2013 Nestlé Investor Seminar 2013
Unique attitude of Chinese moms towards IF / GUM
First time mom Food safety concerns
Internet generation
Chinese moms’ psychology / behaviour
• Safety / reliability brand choice pre-requisite
• Willing to pay premium
• Do extensive brand research
- Internet / social media / retail shopkeeper
• Quick to adopt new technologies
High expectation
Chinese moms insecure about food safety and always look for latest innovations
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9. September 30th, 2013 Nestlé Investor Seminar 2013
Latest directives by State Council poised to change
China IF / GUM landscape
Channel
Self controlled / own milk source Pharma GMP; 3rd party
manufacturing discouraged
New factory certification and
registration requirements
Electronic tracking system,
drug store channel pilot
From 128 to 50 companies with
sales of RMB 5 bio by 2018
Import
9
Milk Farm/ Source Manufacturing
Industry Consolidation
Source:
Ministry of
Industry and
Information
Technology

10. September 30th, 2013 Nestlé Investor Seminar 2013
Wyeth Nutrition and Nestlé Nutrition well-positioned to
capture market opportunities
Commitment to WHO Code and FTSE4Good standards
Comprehensive product offerings
Strong brand image: advanced science, quality
Strong share position in urban markets
Dedicated channel resources and capabilities
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11. September 30th, 2013 Nestlé Investor Seminar 2013
Commitment to WHO Code and FTSE4Good
Our Commitments
• To support breastfeeding with
specific programs
• Nestlé policies:
- no public promotion
- no samples to mothers
• Wyeth Nutrition is implementing
Nestlé policies
• Dedicated resources on compliance
Pre-natal consumer
education
Nestlé instructions
Perinatal nursing
supports
Breastfeeding promotion
Breastfeeding support activities
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12. September 30th, 2013 Nestlé Investor Seminar 2013
IF / GUM
Brain
development
Allergy
Upper mid
Premium
Super
premium
illuma
NANWyeth S-26 Gold
Easy absorption
gut comfort
Lactogen
Portfolios of Wyeth Nutrition and Nestlé Nutrition highly
complementary - covering the First 1,000 Days
Immunity
Mid
Maternal
WN Mama Wyeth
Mama DHA
Materna
NAN HA
immunity
Infant cereal
Gerber
Nestlé
Nestlé
NN Mama
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13. September 30th, 2013 Nestlé Investor Seminar 2013
Nestlé NutritionWyeth Nutrition
Wyeth Nutrition and Nestlé Nutrition both steadily
growing market share
China market
value share %
Source: Nielsen July, 2013
2011 2012 2013
YTD July
2012 2013
YTD July
2011
China market
value share %
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14. September 30th, 2013 Nestlé Investor Seminar 2013
Premium focused portfolio growing strongly y-o-y
High growth trajectory
GCR Sales
Super Premium illuma
Premium S-26 Gold
IF / GUM Special Feeder Maternal
07 100906 08 110504 12
illuma
S-26 Gold
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15. September 30th, 2013 Nestlé Investor Seminar 2013
Strong brand equities built on effective marketing model
illuma leading image attributesS-26 Gold leading image attributes
• Brain & eye development,
helps learning
• Complete nutrition
• Reliable / high quality
• Latest science
• Gut health and absorption
• Imported / super premium quality
Source: BHT report 2013
MOH cooperation CRM services Key account
management
Frequent product
innovation
Consumer
marketing
*MOH: Ministry of Health
*
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16. September 30th, 2013 Nestlé Investor Seminar 2013
Comprehensive quality management to support
highest quality image
Reliable and 100%
traceable milk source
Highly automated
process
“Pharma” practice
quality assurance
Wyeth Nutrition quality management
Source: BHT 2013
GMP standard
Wet blending
mixing process
Professional CRM
system
Consumer perception on
brand with good quality
(% of total respondents)
16
21
48
41
42
50
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Wyeth Gold
Competitor 5
Average of leading
brands: 36
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17. September 30th, 2013 Nestlé Investor Seminar 2013
# of cities
# of outlets
2005 2013
45 300+
5,000 30,000+
Disciplined geographic expansion drove our strong
position in the key / A cities
Source: Nielsen
2008
180
20,000
Expansion prioritisation considering resources,
capability and return
• Sustainable growth
• Top 3 position in important cities
Tianjin
Beijing
Nanjing
ShanghaiWuhan
Chengdu
Changsha
Shenzhen
Guangzhou
Shantou
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18. September 30th, 2013 Nestlé Investor Seminar 2013
Nestlé sales office
opened in Shanghai
Nestle launched
LACTOGEN.
The first international IMF
brand sold in China
Launched NAN
Nestlé
Shuangcheng
factory started
production
Launched Gerber Launched NAN HA
Started construction of
the Dairy Farming
Institute
Deeply rooted in China Since 1908
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19. September 30th, 2013 Nestlé Investor Seminar 2013
ProtectionHealthy Growth
Comprehensive portfolio covering different price tiers and
life stages
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20. September 30th, 2013 Nestlé Investor Seminar 2013
Multiple milk sources
&
single world-class
standard
Superior science &
research
Zero tolerance on
quality
Modernised field force
(E-detailing, mobile
solutions)
Nationwide coverage
& route to market
Ethical
business conduct
07 08 09 10 11 12
GCR Sales
Solid growth delivered
by Nestlé Nutrition
Key success factors driving business growth
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21. September 30th, 2013 Nestlé Investor Seminar 2013
Driving sustainable growth in China:
Align with the Chinese government to address key issues
21
Under 5 mortality rate
Maternal mortality rate
Infant mortality rate
Under 5 underweight
Obesity

22. September 30th, 2013 Nestlé Investor Seminar 2013
Enlightenment Research
partners
4000 infants
Identify nutrition
gap
Develop
products for
China
Start Healthy,
Stay Healthy
Maternal & Infant Nutrition Growth
Study mission: platform to empower the
health of China’s future generation
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23. September 30th, 2013 Nestlé Investor Seminar 2013
Wyeth Nutrition & Nestlé Nutrition: 1+1=3
A highly complementary combination
Strong fit Strategic fit Cultural fit Financial fit
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24. September 30th, 2013 Nestlé Investor Seminar 201324
Wyeth Nutrition and Nestlé Nutrition
Greater China Region
John Cheung
Regional President GCR
Wyeth Nutrition
James Chiu
Regional Business Head GCR
Nestlé Infant Nutrition